How to Manage Prices to Increase Online Sales

by paulamarttila

How to Manage Prices to Increase Online Sales

Price is a very important thing related to your services and products and can be wisely managed to increase online sales, for example is more sellable a product at 10$ or one at 9.99$ ? The answer is granted as 9.99$ is the price that will bring you more sales and i don't say this just by myself, just go to the supermarket and see the price of the promotional offers, what do you see ? I know, you see the 99 cents after the basic price: is it not a proof that this strategy work ? Well, just lowering the price by a penny is able to bring you more sales: wonderful, isn't it ?

People always look for offers as they want to save money, you can increase prices and offering at the same time discounts: for example you are selling your product at 8.99$ and you want to sell it at 9.99$ ( not 10$ because price will look greater and you will miss your important goal that is to increase online sales ), but you fear that this can lower your sales then increase price by 20% and give at the same time a discount of 10% as your price will be a 10.99$ that discounted is 9.99$ . Do you see the difference from 10.99$ and 9.99$ ? The second one look cheaper and will sell more and also a discounted 9.99$ seems less than a normal 9.99$ , but aren't they the same ? Yes, they are but the term discount is associated in our mind with cheaper things and so, though a number is always the same, in our mind change value because of its association with another term.

Another way to increase online sales and prices is to increase the perceived value of your product: just put in your packages bonuses like ebooks, software or other products and declare their prices, at this point you can sell more things as the same price as before and/or at a higher price. Other methods can be to offer free shipping while your product's price is augmented to compensate and to get some extra earning, you see in these technques there is always an association between the price and a word like discounted, free bonus or other a! nd this is the way to increase the ration between the perceived quality and the price. We are talking about perceived quality and not quality as they are two different things: quality can be evaluated through analytical processes based while perceived quality is what you see with your mind and now what it really is. For example a car's quality can be evaluated by several technical factors that can show us if the price is good or not but its perceived quality is a different thing as people can buy it because it has been shown in the latest famous movie or because it has won the most important rally competition. So the winnging formula is about increasing the perceived value as this will make we able to increase online sales and also prices.

Another way you can increase online sales and prices is to associate your product or service with little numbers, for example you are selling an online dating service that is about 15$ per month then you can say something as hey, for just 50 cents per day you can meet new people and maybe the one you are looking for that is different from hey, for just 15$ per month you can meet new people and maybe the one you are looking for: do you see ? I have used in the first statement the word cents while in the second i have used the $ symbol, do you know that the 100 cents make a dollar ? this is another trick to associate a product with a meaningless thing that is the cent. Of course these are just hints as you should use spli test technique to understand what works better...

How to Manage Prices to Increase Online Sales